Functioning of the Local Production Systems in Central and Eastern

Functioning of the Local FunctioningProduction of the Systems Local inProduction Central and Systems Eastern in CentralEuropean and CountriesEastern European Countriesand Siberia and Siberia Case Studies and Comparative Studies Case Studies and Comparative Studies Edited by Mariusz E.Edited Sokołowicz by Mariusz E. Sokołowicz Mariusz E. Sokołowicz – University of Łódź, Faculty of Economics and Sociology Institute of Spatial Economics, Department of Regional Economy and Environment 90-214 Łódź, 36 Rewolucji 1905 r. St. REVIEWER Adam Polko PUBLISHING EDITOR Bogusława Kwiatkowska TYPESETTING AGENT PR COVER DESIGN Stämpfli Polska Sp. z o.o. Cover photo: © Shutterstock.com Monograph financed under a contract of execution of the international scientific project within 7th Framework Programme of the European Union, co-financed by Polish Minis- try of Science and Higher Education (title: “Functioning of the Local Production Systems in the Conditions of Economic Crisis (Comparative Analysis and Benchmarking for the EU and Beyond”)) Monografia sfinansowana w oparciu o umowę o wykonanie projektu międzynarodowego w ramach 7. Programu Ramowego UE, współfinansowanego ze środków Ministerstwa Nauki i Szkolnictwa Wyższego (tytuł projektu: „Funkcjonowanie lokalnych systemów produkcyj- nych w warunkach kryzysu gospodarczego (analiza porównawcza i benchmarking w wybra- nych krajach UE oraz krajach trzecich”)) © Copyright by University of Łódź, Łódź 2015 Published by Łódź University Press First Edition. W.06764.14.0.K Ark. wyd.10,7; ark. druk. 14,375 ISBN 978-83-7969-491-4 (p) ISBN 978-83-7969-492-1 (online) Łódź University Press 90-131 Łódź, 8 Lindleya St. www.wydawnictwo.uni.lodz.pl e-mail: [email protected] tel. (42) 665 58 63, faks (42) 665 58 62 Print and setting: Quick Druk CONTENTS M. E. Sokołowicz – Foreword 7 PART I. CASE STUDIES K. Borseková, K. Petríková – Creative local production systems (the case of building a creative city Košice) 15 N. A. Kravchenko – Regional production system driven by innovation development: case of Siberia, Russia 41 I. Slavova-Georgieva – The competitiveness of cluster “Srednogorie med”: preconditions and limitations 53 Y. Tsvelodub – Coal mining areas: environmental issues and solutions (on the exam- ple of Kuzbass) 71 R. Radev – Business strategies of companies and local production systems in Bul- garian dairy industry 91 PART II. COMPARATIVE STUDIES M. Kalisiak-Mędelska – Self-government in Poland and Russian federation – intro- ductory remarks 119 B. Gontar – Email inquiries in hotels. Comparative study of Łódź and Novosibirsk 139 I. Bednarska-Wnuk – Mobile behaviors of generation C in the local labor Mar- ket: A case study of Poland and Russia 153 K. Januszkiewicz – A career model under the conditions of change and economic crisis – a comparative study conducted in Poland and Russia 173 Z. Gontar – Perspectives of Integrated “Next Industrial Revolution” Clusters in Poland and Siberia 189 M. Marks-Krzyszkowska – Polish and Russian rural areas in transition. Land and demography 211 Irena Slavova-Georgieva* THE COmpETiTiVEnESS OF CLUSTER “SREdnOgORiE mEd”: PRECONDITIONS AND LIMITATIONS 1. introduction Bulgaria is a country which abounds in rich and varied mineral resources. The huge reserves of copper, iron ore, gold, nickel, lead-zinc ores and others give the country an advantage on which it could build a success- ful mining industry. But the abundance of natural resources does not suf- fice to create a competitive and sustainable economy. In his book “The Competitive Advantage of Nations”, Michael E. Porter outlines four determinants that help to describe the effect of their impact on the competitive advantages of the nation, the region or the cluster (figure 1). In Bulgaria, by a combination of the impact of these determinants an interrelated network of companies and municipalities that form a leading cluster for the mining and processing of copper and gold-containing ores has successfully been developing. “Srednogorie Med” cluster is located in Central Sredna Gora and was established as the regional industrial principle as the initiative of the large industrial companies in the region: * Irena Slavova, Assoc. Prof., Ph.D., Department “Marketing and Strategic Planning”, University of National and World Economy, Sofia. 54 I. Slavova-Georgieva “Assarel Medet AD”, “Aurubis Bulgaria AD”, “Elatsite Med AD” and “Chelopech Mining EAD”. The cluster comprises mainly the companies for the mining and processing of copper and gold-containing ores, located in Central Sredna Gora, as wells the companies serving industrial 1 production and local government representatives. Firm strategy, structure and rivalry съперничество С Factor conditions Demand conditions Related and supporting industries Figure 1. Porter’s Diamond Model Source: M. Porter, The Competitive Advantage of Nations, Klasika i Stil, Publishers, Sofia 2004, p. 106 1 In 2005 was registered a non-profit organization, “Srednogorie Med” industrial cluster. The cluster members are “Assarel Medet AD”, “Aurubis Bulgaria AD”, “Elatsite Med AD”, “Chelopech Mining EAD” and “Geotechmin OOD”, “Optix AD”, “Opticoelectron AD”, “Eurotest-Control EAD”, “Erlikit Bulgaria”, “Energeo EOOD”, Panagyurishte Municipality, Pirdop Municipality, Zlatitsa Municipality, Mirkovo Municipality, Chelopech Municipality, Chavdar Municipality, Anton Municipality and Strelcha Municipality. Partners: The Bulgarian Chamber of Mining and Geology, Sofia University “St. Kl. Ohridski”, The university of Mining and Geology “St. Ivan Rilski”. The competitiveness of cluster “Srednogorie med”… 55 2. Analysis of the competitiveness of cluster “Srednogorie med”: preconditions and limitations 2.1. Factor conditions The competitiveness of the clusters in the mining industry critically depends on the quantity and quality of underground deposits of miner- als. Bulgaria undoubtedly possesses huge reserves of mineral resources, the largest relative share of total deposits of metal ores being the mining of copper, gold and silver. The copper-porphyry deposits are of major importance of all available resources in Bulgaria, as 91% of the copper in the country is mined from them, in line with world practice.2 The companies which exploit these deposits are the mining cluster companies: “Assarel Medet AD”, “Elatsite-Med AD”, “Dundee Precious Metals EAD”, which shows the leading role of cluster “Srednogorie Med” for the development of the mining industry, as well as for the development of the non-ferrous metallurgy (“Aurubus AD” – one of the leading companies in the cluster is the only copper-processing company in Bulgaria). By copper production, Bulgaria ranks third in copper mining and fourth in gold mining, which shows the leading role of this country in Euro- pean mining. The companies that carry out mining activities are cluster members, which also allows to qualify the cluster’s position in Europe as leading. By copper mining per capita (11–12 thousand tons) Bulgaria falls within the definition of „a mining country” with an indicator above the average on a worldwide scale. Bulgaria has traditions in mining, rich and developed ore deposits, experienced miners, highly educated professionals and access to high-tech processes for the mining and processing of copper. All of this are important factors of the production process and are available. However what makes a cluster unique and more competitive than others, is the capacity for fur- ther development and support of the factors of production. According 2 Jubilee Annual Newsletter on Mining and Geology in Bulgaria, 2010/1, Bulgarian Chamber of Mining and Geology, p. 56. 56 I. Slavova-Georgieva to Porter the set of factors at any given time is less important than the rate at which they develop, improve and specialize in the specific industries. It is not just the access to factors, but the possibility for them to develop productively that becomes important for competitive advantage.3 “Sred- nogorie Med” seems to meet these requirements. For the development of the factors of production, a decisive role have both public and private sectors. In case of the public educational and research institutions, with which the cluster has partnership, contribute to the development of human resources through the training of specialists and applied research. These are the following universities: The University of Mining and Geology “St. Ivan Rilski”, Sofia University “St. Kliment Ohridski”, as well as the Geological Institute of the Bulgarian Academy of Sciences “Strashimir Dimitrov.” The public institutions play a crucial role for the formation and improvement upon the factors, no matter if they are qualified human resources, fundamental scientific knowledge, and economic information or infrastructure. As an exclusive owner of mineral resources and conceder of concessionary rights the state has an effect upon the admission to investments in the extractive industry. According to Alex Nestor, Vice-President of Bulgarian Chamber of Mining and Geology and Chairman of the Cluster “Srednogorie Med” even the elementary improvement of the communica- tion between the different institutions in Bulgaria, which execute the policy in the area of mineral resources, as well as the simplification of the admin- istrative procedures, can disburden the investments access in this sector. The amendment to the Law on Mineral Resources of 2010; the estab- lishing of a single authority for the management and control of the mineral resources in the country (Directorate

Load more